Final answer:
Asset reviews should be performed on an account's overall investment portfolio, not the individual assets held in the portfolio.
Step-by-step explanation:
The statement is true. When conducting asset reviews, it is important to assess the performance, risk, and diversification of the overall portfolio, rather than analyzing individual assets in isolation. This approach allows investors to evaluate the performance of their entire investment strategy and make informed decisions.
For example, if an investor holds a diverse portfolio that includes stocks, bonds, and real estate, an asset review would assess how these different investments interact and contribute to the overall performance and risk of the portfolio. It helps investors identify any imbalances or areas of improvement.
In contrast, analyzing individual assets alone can be misleading as their performance and risk characteristics may change when combined with other assets in a portfolio. Therefore, asset reviews should consider the bigger picture and focus on the overall portfolio.